GEM dividend good Although the capital of the GEM than the motherboard comes little, but some companies in 2011 can still hand in dazzling transcripts, or even pay a dividend to reward shareholders. Listed in August 2010, the Long March Holdings (SCC, 0158, GEM), is the champion of the 2011 GEM dividend king announced the payment of a dividend of 6.50 cents. The fiscal year ended December 31, 2011, the company achieved 5.204 million ringgit net profit of RM 35.624 million turnover. The runner-up position from the semiconductor field of LNG resources (LNGRes, 0025, GEM) in the fourth quarter dividend of 2 cents, accumulated throughout the year up to 3 cents; runner-up Al software (ELSoft, 0 090, GEM) won the single quarter and full year dividend payments were 1 cents and 2 cents. One, despite the OPCOM holding (OPCOM, 0 035, GEM) most recent quarterly dividend payments, the cumulative first three quarters of the group has distributed a dividend of 24.5 cents per share, the GEM companies to distribute the highest dividend.
SCC Holdings Bhd today entered into a Memorandum of Understanding (MoU) to acquire a 100 per cent equity interest in Polyware Sdn Bhd and KMB Trading Sdn Bhd from its individual vendors.
Polyware's principle activity is manufacturing and the distribution of pipe fittings for water utilities and irrigation system for the infrastructure and plantation industries.
Meanwhile, KMB Trading's main business is the trading of plumbing material irrigation fittings system for the infrastructure and plantation industries.
In a filing with Bursa Malaysia today, it said the MoU would allow SCC Holdings to venture into the manufacturing of clean water pipe fittings and out-fittings in water infrastructure projects, both locally and overseas.
"At the same time, it allows the group to explore the synergistic potential in the water irrigation industry for animal farming and agriculture industries to further expand its "Green Solutions" direction," it said.
(SCC, 0158, GEM), is such a stock. Listed on the GEM (ACE) since August 3, 2010 has been a full 22 months, I believe most investors, have not noticed such a stock, not to mention the company's live and products. No wonder the company's share price has failed to break the listed price of 78 cents. However, if you read the prospectus of the company's quarterly quarterly, as well as the 2010 and 2011 Annual Report, you will find the following facts: ● The company had two consecutive years, won the "Golden Bull Award of the Nanyang Siang Pau, which is the affirmation of the quality of the company. ● Although the company as a GEM, already 40 years old, through a series of stormy weather, not only will survive and live a more tough. ● March 31 this year, ended the first quarter of financial year to more than 21 million of capital, banks have deposits of 21 million, did not owe the bank a penny, there are a few motherboard companies can do? ● This year dividend of 6.5 cents (tax-free) (ex-dividend date: June 28; collection dates: July 16), 4 cents last year (tax exempt). ● The company adhere to the principle of "conscience money" business, the founder in order to protect people's health as their responsibility to the people's health, we must first ensure that people eat healthy meat - chicken, pork, and does not contain harmful people health feed additives, especially antibiotics. So, twenty years, the company spared no effort to promote clean feed program, committed to educating the chicken farmers, pig farmers, the use of non-antibiotic feed additives, to the clean production of meat, so that people eat healthy. This to achieve the purpose of protecting people's health through the promotion of animal health products, is a very noble business philosophy. The company also operates a catering equipment business, to advocate and promote the new food culture. From the perspective of the business philosophy, the company engaged in the green revolution of the Levi beings. From the perspective of business strategy taken by the company Blue Ocean Strategy. 5 condition of quality stocks The company complies with the five conditions of the second line of quality stocks: ① a reasonable profit: net profit of 12 cents per share. ② reasonable dividend: tax-free dividend distribution of 6.5 cents, equal to 53% of the net profit of more than 35% of the prospectus, the prospectus promised. The cash-rich companies, capital expenditure and therefore the ability to maintain the dividend this year; currently 75 cents of stock, the dividend rate as high as 8.6% and a half times higher than bank fixed deposits. ③ stable cash flows, financial stability. ④ to the share price of 75 cents per share, net profit of 12 cents to earnings ratio is only 6.25 times. The ⑤ moderate growth: Lock in 2018 brand to the world. Investment Strategy: long-term holding, personal tracking the performance of the company's progress and investment trends.
SCC is now trading at a PE of 7.4 times (based on last 4 quarters' EPS of 12.5 sen). At this PE multiple, SCC is deemed fully valued for a smallcap.
Technical Outlook
SCC broke above its resistance at RM0.65 & RM0.78 over the past 2 months. The breakout above its IPO price is quite significant as this means that investors have come around to view the stock in a positive light. For this to happen in a market that is overflowing with negative sentiment, speaks a lot about the positive outlook for the stock. However, the current strength could be due to nothing more than an attractive dividend payout of 6.5 sen (entitlement date: July 7).
Conclusion
Based on good financial performance and potentially bullish technical outlook, SCC could be a good stock for long-term investment.
SCC is in line with the five conditions of the second line of quality stocks, reasonable profits, reasonable dividends, strong cash flow, a low PE ratio and growth potential.
All Values in Millions MYR (except Per Share) FY 2011 FY 2010 Period End Date 12/31/2011 12/31/2010 Cash From Operating Activities + Net Income 5.20 5.91 + Depreciation & Amortization 0.54 0.28 + Other Non-Cash Adjustments -1.16 -4.13 + Changes in Non-Cash Capital -0.92 0.31 Cash From Operations 3.65 2.37 Cash From Investing Activities + Disposal of Fixed Assets 0.01 0.00 + Capital Expenditures -0.20 -0.25 + Increase in Investments N/A 0.00 + Decrease in Investments N/A 0.00 + Other Investing Activities N/A 7.71 Cash From Investing Activities -0.19 7.46 Cash from Financing Activities + Dividends Paid -1.71 -0.43 + Change in Short-Term Borrowings N/A 0.00 + Increase in Long-Term Borrowings N/A 0.00 + Decrease in Long-term Borrowings -0.08 -0.11 + Increase in Capital Stocks N/A 8.69 + Decrease in Capital Stocks N/A 0.00 + Other Financing Activities -0.03 -1.39 Cash from Financing Activities -1.82 6.77 Net Changes in Cash 1.64 16.60
SCC is in line with the five conditions of the second line of quality stocks, reasonable profits, reasonable dividends, strong cash flow, a low PE ratio and growth potential.
I'm holding this stock.If intent to invest must more patient for longer time to hold due low liquity of volume transaction stock.Correct me if I'm wrong.
Company Name: SCC HOLDINGS BERHAD (ACE Market) Stock Name: SCC Date Announced: 24/08/2012
Announcement Detail:
EX-date: 03/10/2012
Entitlement date: 05/10/2012
Entitlement time: 05:00:00 PM
Entitlement subject: Interim Dividend
Entitlement description: Single tier tax exempt interim dividend of 5 sen per share and a special single tier tax exempt interim dividend of 5 sen per share
thanks for covering this kcfan. I will have to study this ACE counter. looks interesting. Better than Haji Mohd Limpek's CSL, that's for sure! LOL
normally i wont really go for ACE counters, but you and Chong have convinced me otherwise. may be good to look for some cheaper counters to come in, just in case the bull decides to show!
Current Year Quarter Preceding Year Corresponding Quarter Current Year to Date Preceding Year Corresponding Period 30/06/2012 30/06/2011 30/06/2012 30/06/2011 RM '000 RM '000 RM '000 RM '000 1 Revenue 8,221 9,314 16,972 17,511 2 Profit/Loss Before Tax 1,159 1,743 2,935 3,417 3 Profit/Loss After Tax and Minority Interest 842 1,279 2,151 2,523 4 Net Profit/Loss For The Period 843 1,279 2,149 2,523 5 Basic Earnings/Loss Per Shares (sen) 1.97 2.99 5.03 6.04 6 Dividend Per Share (sen) 10.00 0.00 10.00 0.00 As At End of Current Quarter As At Preceding Financial Year End 7 Net Tangible Assets Per Share (RM) 0.8200 0.7700
1H net profit 2.149million(decreased 14.82%).Need to hold long loooog time yoh!
optimuslyk, you can if you want to hold for long term. I would only go in below my FV 71 sens. looks like solid company, but value investor waits for Mr Market to offer him crazy bargain price!
Honestly I didn't set any Target Price on most of counters intend to invest.Why b'cos.. If a company is doing well and continues to earn an attractive return on capital, I’m in no hurry to sell. We will sell when events materially threaten that return on capital, the discount rate implicit in the stock gets too low because the valuation has gone up, or if I just have a much better idea. Hope I can answer your request TP ??
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Raymond Hoh
1 posts
Posted by Raymond Hoh > 2011-04-20 17:55 | Report Abuse
WRONG DESCRIPTION I THINK